Mortgage brokers and finance aggregators have seen their market share grow dramatically from 25 per cent just 10 years ago to owning 43 per cent of the $4.9 trillion Australian mortgage market.
In 2013, research by the Australian Bureau of Statistics revealed third party lending volumes hit a whooping $100 billion!
There is little doubt that mortgage broking is a profession that has grown with the Australian consumers ever increasing requirements for choice and service.
This sentiment was reinforced by the latest JP Morgan/Fujitsu’s Australian Mortgage Industry report which revealed customers actively searched out the most competitive financing deals due to the rising interest rate environment, with the third party market capturing a larger portion of refinancing – up from 20 per cent in 2000 to over 50 per cent in 2006.
As consumer appetite for qualified, ethical mortgage professionals continues to grow, so does the need for advisers to diversify their services and introduce mortgage advice.
You, as their trusted adviser, should be involved in the structure of their lending transaction to ensure that it is conducive to the strategy that has been formulated for their future.
Meeting the debt solutions of clients is a key acquisition platform in achieving lifelong client earnings. There are two primary ways you can tap into this market without completely overhauling your business:
- Direct Writer: enables the accredited person to advise on and write the lending transaction
- Outsource Referral Model: focus on strategy and refer to an experienced Lending Manager, while retaining complete ownership of the process and the client
While it may appear intimidating to new entrants, the mortgage industry presents an exciting and vibrant channel, impacting positively on the lives of consumers and increasing bottom lines for adviser businesses.
Tanya Sale is the chief executive officer of outsource financial. outsource financial work in partnership with legal firms, financial planners, accountants, licensed conveyance’s and other professional service groups who want to offer their clients a simple and cost-effective range of lending, leasing and asset finance.
